Segmenting the market

Question 1

What are segments?

Answer 1

Segments are different sections that markets can be sorted into

Question 2

Segments are different sections that markets can be sorted into. What is each segment made up of?

Answer 2

Each segment is made up of consumers with shared:
1) Characteristics
2) Needs
and
3) Interests

Question 3

Segments are different sections that markets can be sorted into. Each segment is made up of consumers with shared characteristics, needs and interests.

Enterprises segment their markets for various reasons.

Why do enterprises segment their markets?

Answer 3

Enterprises segment their markets to:
1) Better understand the characteristics, needs and interests of current and potential customers
2) Develop products that suit the needs of different market segments
3) Develop products for a particular market segment
4) Choose promotional methods that are better suited to the target market

Question 4

Market segmentation:
How do enterprises break down a large market into smaller groups of consumers?

Answer 4

Enterprises break down a large market into smaller groups of consumers by analysing the market and dividing it into segments, each containing consumers with similar characteristics

Question 5

Markets can be segmented in different ways. Enterprises may target one or more segments. They may also target different categories within each segment.

What are the market segments?

Answer 5

The market segments are:
1) Demographic segmentation
2) Behavioural segmentation
3) Geographic segmentation
4) Psychographic segmentation

Question 6

Markets can be segmented in different ways. Enterprises may target one or more segments. They may also target different categories within each segment.

The market segments are demographic segmentation, behavioural segmentation, geographic segmentation and psychographic segmentation.

1) Demographic segmentation:
What does demographic segmentation involve?

Answer 6

Demographic segmentation involves various characteristics of consumers, such as:
1) Age
2) Gender
3) Family size
4) Ethnicity/race
5) Religious and cultural beliefs
6) Income
7) Education level
8) Socio-economic group

Question 7

Markets can be segmented in different ways. Enterprises may target one or more segments. They may also target different categories within each segment.

The market segments are demographic segmentation, behavioural segmentation, geographic segmentation and psychographic segmentation.

2) Behavioural segmentation:
What does behavioural segmentation involve?

Answer 7

Behavioural segmentation involves:
1) Consumer spending choices
2) How often customers buy products (usage rate)
3) The benefits customers expect to get from them
4) How loyal customers are to brands and enterprises

Question 8

Markets can be segmented in different ways. Enterprises may target one or more segments. They may also target different categories within each segment.

The market segments are demographic segmentation, behavioural segmentation, geographic segmentation and psychographic segmentation.

3) Geographic segmentation:
What is geographic segmentation?

Answer 8

Geographic segmentation is where consumers live

Question 9

Markets can be segmented in different ways. Enterprises may target one or more segments. They may also target different categories within each segment.

The market segments are demographic segmentation, behavioural segmentation, geographic segmentation and psychographic segmentation.

4) Psychographic segmentation:
What does psychographic segmentation involve?

Answer 9

Psychographic segmentation involves:
1) Social class
2) Attitudes
3) Lifestyle
4) Personality characteristics